It's possible to trade profitably on the Forex, the nearly $2 trillion worldwide currency exchange market. But the odds are against you, even more so if you don't prepare and plan your trades. According to a 2014 Bloomberg report, several analyses of retail Forex trading, including one by the National Futures Association (NFA), the industry's regulatory body, concluded that more than two out of three Forex traders lose money.
This suggests that self-education and caution are recommended. Here are some approaches that may improve your odds of taking a profit.
Prepare Before You Begin Trading
Because the Forex market is highly leveraged -- as much as 50 to 1 -- it can have the same appeal as buying a lottery ticket: some small chance of making a killing. This, however, isn't trading; it's gambling, with the odds long against you.
A better way of entering the Forex market is to carefully prepare. Beginning with a practice account is helpful and risk-free. While you're trading in your practice account, read the most frequently recommended Forex trading books, among them
Currency Forecasting: A Guide to Fundamental and Technical Models of Exchange Rate Determination, by Michael R. Rosenberg is short, not too sweet and highly admired introduction to the Forex market.
Forex Strategies: Best Forex Strategies for High Profits and Reduced Risk, by Matthew Maybury is an excellent introduction to Forex trading.
The Little Book of Currency Trading: How to Make Big Profits in the World of Forex, by Kathy Lien is another concise introduction that has stood the test of time.
All three are available on Amazon. Rosenberg's book, unfortunately, is pricey, but it's widely available in public libraries. "Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude," by Mark Douglas is another good book that's available on Amazon, and, again, somewhat pricey, although the Kindle edition is not.
Use the information gained from your reading to plan your trades before plunging in. The more you change your plan, the more you end up in trouble and the less likely that elusive forex profit will end up in your pocket.
Diversify and Limit Your Risks
Two strategies that belong in every trader's arsenal are:
Diversification: Traders who execute many small traders, particularly in different markets where the correlation between markets is low, have a better chance of making a profit. Putting all your money in one big trade is always a bad idea.
Familiarize yourself with ways guaranteeing a profit on an already profitable order, such as a trailing stop, and of limiting losses using stop and limit orders. These strategies and more are covered in the recommended books. Novice traders often make the mistake of concentrating on how to win; it's even more important to understand how to limit your losses.
Be Patient
Forex traders, particularly beginners, are prone to getting nervous if a trade does not go their way immediately, or if the trade goes into a little profit they get itchy to pull the plug and walk away with a small profit that could have been a significant profit with little downside risk using appropriate risk reduction strategies.
In "On Any Given Sunday," Al Pacino reminds us that "football is a game of inches." That's a winning attitude in the Forex market as well. Remember that you are going to win some trades and lose others. Take satisfaction in the accumulation of a few more wins than losses. Over time, that could make you rich!
HUMMUS-CRUSTED CHICKEN
HUMMUS-CRUSTED CHICKEN
Somehow the idea of using hummus as a sauce in baking had never occurred to me. But as soon as she mentioned it, the recipe moved to the top of my list. So this weekend, I picked up some chicken and my favorite hummus (thought about going homemade, but I was in the mood for quick and easy). And then in order to make it a one-pot meal, I also picked up a bunch of veggies to bake up alongside the chicken. And then in less than 10 minutes of prep time, roughly chopped the veggies and added them and the chicken breasts to a big baking dish, slathered the chicken with hummus and some lemon juices, sprinkled on a little sumac (or you can use smoked paprika), and popped it in the oven. About a half hour later, I learned what “hummus-crusted” is all about.
Hummus serves as the perfect sauce in this easy baked chicken dish!
INGREDIENTS:
- 4 boneless, skinless chicken breasts
- salt and pepper
- 1 zucchini, chopped
- 1 yellow squash, chopped
- 1 medium onion, chopped
- 1 cup hummus, homemade or storebought
- 1 Tbsp. olive oil
- 2 lemons
- 1 tsp. smoked paprika or sumac
DIRECTIONS:
- Preheat oven to 450 degrees. Prepare one large baking dish or two smaller baking dishes with cooking spray.
- Pat the chicken dry. Season the chicken breasts with generous pinches of salt and pepper. In a large bowl, toss the zucchini, squash and onion with olive oil until evenly coated. Season with salt and pepper.
- If using one baking dish, place all of the vegetables on the bottom of the dish in an even layer. Lay the four chicken breasts evenly on top, then cover each chicken breast with the hummus so that the entire breast is covered. Squeeze the juice of one lemon over the chicken and vegetables. Then sprinkle the pan with smoked paprika or sumac. Thinly slice the remaining lemon, and place the slices in between the chicken and vegetables if desired.
- **If using two pans, use one for the chicken and one for the vegetables.**
- Bake for about 25-30 minutes, until the chicken is cooked through and the vegetables are tender. Serve immediately.
